1. RBI instructs banks to provide short-term crop loans of up to Rs 3,00,000 at lower rate

RBI instructs banks to provide short-term crop loans of up to Rs 3,00,000 at lower rate

The Reserve Bank of India (RBI) has instructed all the banks to provide interest concession of two percent on short term crop loans of up to Rs 3,00,000.

By: | Published: August 14, 2015 9:52 AM

The Reserve Bank of India (RBI) has instructed all the banks to provide interest concession of two percent on short term crop loans of up to Rs 3,00,000.

The RBI, in a notification issued from Mumbai yesterday, said that interest subvention of two percent per annum will be made available to public and private sector banks provided they lend short term credit at the ground level at seven percent per annum to farmers.

The apex bank has said that additional interest subvention of three percent will be available to farmers for repaying the loan promptly from the date of disbursement of the crop loan. This implies that farmers paying promptly would get short term crop loans at 4 per cent during the year 2015-16.

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